RPM International (NYSE:RPM) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

RPM International (NYSE:RPM) released its earnings results on Wednesday. The specialty chemicals company reported $1.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.83 by $0.06, FiscalAI reports. RPM International had a net margin of 8.63% and a return on equity of 22.55%. The firm had revenue of $2.23 billion during the quarter, compared to the consensus estimate of $2.18 billion. During the same period in the previous year, the firm earned $1.72 earnings per share. RPM International’s revenue was up 7.2% compared to the same quarter last year.

Here are the key takeaways from RPM International’s conference call:

• RPM reported another record quarter, with consolidated sales up 7.2% and adjusted EBIT and adjusted EPS also hitting records. Management said all segments grew sales and EBIT, marking the 16th quarter of the last 18 with record adjusted EBIT.
• Construction Products Group and Performance Coatings Group continued to drive growth, supported by maintenance/restoration demand, data centers, infrastructure, and improved system selling. Management highlighted broad international strength, including double-digit growth across all international regions.
• RPM expects raw material inflation to remain elevated in the first half of fiscal 2027, with Q1 inflation projected at 5%-6% and Q2 potentially 6%-8%. The company said pricing actions are already in place to offset inflation dollar-for-dollar, with margin recovery expected later in the year if costs moderate.
• Management said its SG&A optimization actions are on track to deliver about $75 million of savings in fiscal 2027, building on roughly $20 million of benefit in Q4. RPM also said its Green Belt program is expanding and has already identified more than $30 million of additional savings opportunities.
• For fiscal 2027, RPM guided to sales growth of 3%-7% and adjusted EBITDA growth of 5%-10%, with consumer stabilization helping but visibility still limited. The company also noted continued capital deployment flexibility, including a $700 million increase to its share repurchase authorization and ongoing bolt-on M&A activity.

RPM International Stock Down 2.7%

Shares of RPM International stock opened at $104.52 on Thursday. The stock has a market capitalization of $13.34 billion, a price-to-earnings ratio of 20.01, a PEG ratio of 2.31 and a beta of 1.04. RPM International has a twelve month low of $92.92 and a twelve month high of $129.12. The company has a current ratio of 2.28, a quick ratio of 1.44 and a debt-to-equity ratio of 0.81. The business’s 50 day simple moving average is $105.35 and its 200-day simple moving average is $106.28.

RPM International Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Tuesday, July 14th will be paid a $0.54 dividend. This represents a $2.16 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date is Tuesday, July 14th. RPM International’s payout ratio is presently 41.62%.

Wall Street Analyst Weigh In

A number of equities analysts have commented on RPM shares. Zacks Research upgraded shares of RPM International from a “strong sell” rating to a “hold” rating in a report on Thursday, April 9th. BMO Capital Markets lowered their target price on RPM International from $148.00 to $143.00 and set an “outperform” rating for the company in a research note on Monday, July 6th. Morgan Stanley lifted their target price on RPM International from $118.00 to $121.00 and gave the stock an “equal weight” rating in a research report on Thursday, April 9th. Bank of America cut their price target on RPM International from $128.00 to $125.00 and set a “buy” rating on the stock in a research note on Thursday, April 9th. Finally, UBS Group raised RPM International from a “neutral” rating to a “buy” rating and increased their price target for the company from $118.00 to $130.00 in a report on Wednesday, May 27th. Eleven research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $127.00.

Key RPM International News

Here are the key news stories impacting RPM International this week:

• Positive Sentiment: RPM posted quarterly EPS of $1.89, ahead of estimates, while revenue of $2.23 billion also topped forecasts, signaling strong demand and execution across the business. RPM earnings report
• Positive Sentiment: The company said it delivered record fiscal 2026 fourth-quarter and full-year results and expanded its buyback plan, which can support earnings per share and boost shareholder returns. RPM record results release
• Positive Sentiment: Management’s tone on the earnings call was confident despite headwinds, and analysts noted the company expects to navigate near-term cost pressures while maintaining growth. RPM outlook article
• Neutral Sentiment: One filing highlighted an insider share sale tied to tax withholding from vested performance stock units, which appears routine and not necessarily a bearish signal. Insider filing article
• Negative Sentiment: RPM warned that the Iran conflict could pressure costs, especially early in fiscal 2027, which could weigh on margins if input or logistics expenses remain elevated. Cost pressure article

Institutional Trading of RPM International

Several hedge funds have recently added to or reduced their stakes in the business. Los Angeles Capital Management LLC acquired a new position in RPM International during the 4th quarter worth $60,000. Resources Management Corp CT ADV increased its holdings in shares of RPM International by 21,566.7% during the fourth quarter. Resources Management Corp CT ADV now owns 650 shares of the specialty chemicals company’s stock valued at $68,000 after purchasing an additional 647 shares during the period. BOKF NA bought a new stake in shares of RPM International during the third quarter valued at about $118,000. Brown Brothers Harriman & Co. raised its stake in shares of RPM International by 151.6% during the fourth quarter. Brown Brothers Harriman & Co. now owns 1,746 shares of the specialty chemicals company’s stock valued at $182,000 after purchasing an additional 1,052 shares in the last quarter. Finally, Lazard Asset Management LLC lifted its holdings in RPM International by 5.8% in the second quarter. Lazard Asset Management LLC now owns 1,685 shares of the specialty chemicals company’s stock worth $184,000 after purchasing an additional 93 shares during the period. Institutional investors own 80.95% of the company’s stock.

RPM International Company Profile

RPM International Inc is a global holding company whose subsidiaries specialize in the manufacture and marketing of high-performance coatings, sealants, building materials, and specialty chemicals. Through its two principal operating segments—Performance Coatings and Industrial Coatings—RPM serves a diverse range of end markets, including construction, consumer products, industrial maintenance, and specialty applications.

The company’s Performance Coatings segment offers a broad portfolio of architectural coatings, waterproofing systems, and specialty building products used by contractors, builders, and homeowners.